Introducing Property Valuation by Blackledge Michael

Author:Blackledge, Michael [Blackledge, Michael]
Language: eng
Format: epub
Publisher: Taylor and Francis
Published: 2016-09-12T16:00:00+00:00

Decide appropriate £ (or $ or €) value per measurement unit (such as per sq.m. IPMS 3 – Office) from best evidence and apply to the subject property’s area.

It is often helpful when undertaking stage 3 to construct a comparable matrix – a table that identifies and summarises the characteristics of each comparable aligned against the subject property. This can then be used to construct a second table where the decided percentage adjustments (or expressed in currency if preferred) for each factor can be noted, being zero, plus or minus depending on whether the comparable is identical, worse or better respectively than the subject. An example of this type of analysis approach is given in section 16.8 of Chapter 16 .

Before completing stage 4, consideration must be given as to how relevant is each comparable. Ideally, all comparables are recent, of exactly the same type and standard of property and in very similar locations to the subject. However, this is often not the case and some comparables are more equal than others. To make suitable allowance for the degree of comparability, a weighting method can be applied. To some extent the choice of the ‘weights’ allocated to each item of evidence is subjective and relies on the valuer’s expert opinion since an entirely objective assessment can be difficult to quantify against evidence.

The process involves allocating a percentage weight against each comparable, such that the sum of all the weights is 100 per cent. The greater the similarity and relevance of the comparable to the subject, the higher the weight allocated. Then, each comparison value per unit of measurement is multiplied by the weight divided by 100. The sum of the weighted comparables then gives a more balanced figure to apply to the subject’s area rather than using a simple mean or average of the figures.

Example

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